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Can a single Dad claim the EIC of his child

The child is 18 and lived with his dad for 8 months. He started to live by himself and earn the money from Aug 2019.  The boy finished his own tax return WITHOUT claim he is his dad's dependent.  and he did not want to amended it. The boy's income is less than $10K.

 

The dad prepared tax return in turbotax, and he choose did not support the boy more than 6 months. so the boy will not be the dad's dependent. The dad's tax return status is single.  But the trubotax said the boy could still be qualifying child for the Dad's Earned Income Credit.  Could anyone help confirm if it is allowed?  It will be about $2000 for the Earned Income credit with the qualifying child. 

 

My friend checked the irs website,looks it could meet all test.  But he still feel not sure about it . Thank you for your help. 

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Accepted Solutions

Can a single Dad claim the EIC of his child

The child doesn't need to be a dependent to get the EIC ... they only need to be your child, under the age of 19, who lives with you more than 1/2 the year and does not file a joint return  ... see the rules here: https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/qualif[product key remov...

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Can a single Dad claim the EIC of his child

Read the EIC rules ... support is NOT one of the requirements... taught this class for 8 years and this is one of the trick questions on the final that many would miss if I did not teach them well.   So the 18 year old child who lives at home is a qualifying child for the EIC   IF  no other parent will be claiming the child.  I have used this loop hole many times. 

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Hal_Al
Level 15

Can a single Dad claim the EIC of his child

If it is a fact that the boy does not qualify as his father's dependent, then the EIC exception DOES apply in this case.  Your friend can claim EIC, even though the child is not his dependent.  Turbo tax claiming the son as qualifying child for the Earned income credit is correct.

 

I think the confusion is that the rest of us are not convinced that the facts justify him not claiming the dependent. Or stating that another way, the facts do not support the boy claiming himself. 

 

"The dad  choose not support his son for 6 months" does prove the support question.  It goes by the total dollar amount spent for the whole year.  We know (or think we know) the boy spent less than $10K on his own support.  The dad probably spent more than that.

The IRS has a worksheet that can be used to help with the support calculation. See: http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf The support value of the home, provide by the father, for 8 months,  is the fair market rental value + utilities and other expenses, divided by the number of occupants.

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9 Replies

Can a single Dad claim the EIC of his child

Ok ... the child is a dependent of the dad even if he doesn't like it and should amend the return since it will not change his refund any to do so. 

 

The dad should file claiming the child as a dependent and for the EIC even if the boy refuses to amend the return ... dad will need to mail in the return, efile will not be an option.   He could claim the EIC only if desired ... follow the interview in the EIC section. 

Hal_Al
Level 15

Can a single Dad claim the EIC of his child

No. You can not, usually,  claim the EIC, if the child is not your dependent. 

 

You may have heard of  situations where that is allowed. They do not appear to be applicable in your case.  If TurboTax is saying you qualify for the EIC, you may  have indicated, in the interview, that the other parent is claiming the child, not that the child is claiming himself.  See below  for an explanation*. Another possibility is that you have indicated that the child is self supporting.  See below for a  discussion on that**.

 

But, more importantly, as others have already pointed out,  your son does qualify as your dependent (he's under 19, lived with you  more than 6 months, and did not provide more than half his own support).  

 

Equally important; with the tax law change, effective 2018, most dependents will get the same refund whether they claim themselves or not. The personal exemption has been eliminated and the standard deduction increased.

And he will get the $1200 stimulus check, even if he is your dependent (as long as he's not your dependent for 2020). He'll just have to wait until early 2021. See below for an explanation***.

 

You should file a tax return, claiming him and the EIC.  You cannot e-file. You will have to mail in your return.  If he will not voluntarily amend, the IRS will eventually make him amend (and make you prove your claim).  But amending will not (most likely) change his refund.

_____________________________________________________________________________

* There is a special rule in the case of divorced & separated (including never married) parents. When the non-custodial parent is claiming the child as a dependent/exemption/child tax credit; the custodial parent is still allowed to claim the same child for Earned Income Credit, Head of Household filing status, and day care credit. This "splitting of the child" is not available to parents who lived together at any time during the last 6 months of the year; then only one of you can claim the child for any tax reasons. The tax benefits may not be split in any other manner.

Note in particular that the non-custodial parent can never claim the Earned Income Credit, Head of Household filing status or the day care credit, based on that child , even when the custodial parent has released the exemption to him.

 

** There is a special rule that doesn't come up very often.  A parent qualifies for the EIC, even if a child, that lives with him, is self supporting.  You say "The dad prepared tax return in turbotax, and he choose did not support the boy more than 6 months".  I believe the exact wording of the question is "Did (Child's name) pay for more than half his living expenses".  If you answer yes to that question, and also indicate that the child is under 19, and  lived with you more than half the year; then TT is correctly giving you the EIC, even though he does not qualify as your dependent.  So, your friend is correct,  it could meet all tests. 

 

***Under the CARES Act, if you are claimed as a dependent on someone else’s return you cannot receive a stimulus check, in 2020.   If you were claimed as a dependent for 2019, but will not be for 2020, you will most likely get it  in 2021..

"In essence, the stimulus check acts as an advance of your 2020 income tax refund. This means when you prepare your 2020 income tax return, there will be a line to include the section 6428 credit. The credit on your 2020 return is subtracted by any amount received as a stimulus check in 2020. If the amount you received as a stimulus check is less than the credit you are due, the difference will be included as part of your 2020 refund. If you have been overpaid by receiving the stimulus check, however, you will not be required to return any excess amount".

 

Can a single Dad claim the EIC of his child

The child doesn't need to be a dependent to get the EIC ... they only need to be your child, under the age of 19, who lives with you more than 1/2 the year and does not file a joint return  ... see the rules here: https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/qualif[product key remov...

Can a single Dad claim the EIC of his child

I don’t understand who you, the dad, and the friend are in your question.

if the child is under age 19 as of December 31, 2019, and lived in one of the child’s parents homes more than half the nights of the year, then that parent qualifies to claim the child as a dependent and for EIC.

 

The child is required by law to state on his tax return, “I can be claimed as a dependent by someone else” even if he does not want to be claimed and even if the person who could claim him does not want to claim him.

 

If the child qualifies as a dependent and qualifying person for EIC for the father, and if the father wants to claim these tax benefits, the father may need to file by mail, because e-filing may be blocked by the child’s failure to check the box that says “I can be claimed as a dependent.”  When the IRS has two returns with conflicting information, such as the father claims the child but the child says he can’t be claimed, the IRS will send letters to both taxpayers to begin an investigation and one of the taxpayers will be required to correct their return and possibly repay any excess refund with interest and penalties.

Hal_Al
Level 15

Can a single Dad claim the EIC of his child

There may be another explanation for TutboTax (TT) giving your the EIC

 

There is a special rule that doesn't come up very often.  A parent qualifies for the EIC, even if the child is self supporting.  You say "The dad prepared tax return in turbotax, and he choose did not support the boy more than 6 months".  I believe the exact wording of the question is "Did (Child's name) pay for more than half his living expenses".  If you answer yes to that question, but also indicate that:

  • the child is under 19 (or a full time student under 24)
  • the child lived with you more than half the year
  • The child is a properly related child

then TT is correctly giving you the EIC, even though he does not qualify as your dependent.  So, your friend is correct,  it could meet all tests. 

 

BUT, from what you describe, your son did not provide more than half his own support for the year (you supported him for 8 months and he made less than $10K).  The proper way is for you  to claim him as a dependent, and get the $500 other dependent credit, as well as the EIC.

 

Can a single Dad claim the EIC of his child

Read the EIC rules ... support is NOT one of the requirements... taught this class for 8 years and this is one of the trick questions on the final that many would miss if I did not teach them well.   So the 18 year old child who lives at home is a qualifying child for the EIC   IF  no other parent will be claiming the child.  I have used this loop hole many times. 

Can a single Dad claim the EIC of his child

Thank you so much for your guys' response. 

 

I saw this from IRS website.  That's why I am thinking about it. The dad (my friend) choose not support his son for 6 months, so the boy will not go to his dependent part.  So the dad think he can keep going to efile (no conflict with his son's return) , but the turbo tax claim the son as qualifying child for the Earned income credit. 

 

AS someone mentioned, maybe it's not for my friend's case.  still confused because the boys is not anyone's dependent . 

From https://www.irs.gov/faqs/earned-income-tax-credit#:~:text=my%20qualifying%20child%3F-,Answer%3A,for%...

 

 Must I be entitled to claim a child as a dependent to claim the earned income credit based on the c...

Answer:

Generally, you don't have to be entitled to claim the child as a dependent to claim the earned income credit based on the child being your qualifying child, because the support test for qualifying child as a dependent does not apply for the earned income credit.  However, if your qualifying child was married at the end of your tax year, he or she can't be your qualifying child unless you meet one of the following conditions:

  • You're entitled to claim the child as a dependent, or
  • The reason you're not entitled to claim the child as a dependent is that you released a claim to a dependency exemption for the child under the special rule for divorced or separated parents or parents who live apart
Hal_Al
Level 15

Can a single Dad claim the EIC of his child

If it is a fact that the boy does not qualify as his father's dependent, then the EIC exception DOES apply in this case.  Your friend can claim EIC, even though the child is not his dependent.  Turbo tax claiming the son as qualifying child for the Earned income credit is correct.

 

I think the confusion is that the rest of us are not convinced that the facts justify him not claiming the dependent. Or stating that another way, the facts do not support the boy claiming himself. 

 

"The dad  choose not support his son for 6 months" does prove the support question.  It goes by the total dollar amount spent for the whole year.  We know (or think we know) the boy spent less than $10K on his own support.  The dad probably spent more than that.

The IRS has a worksheet that can be used to help with the support calculation. See: http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf The support value of the home, provide by the father, for 8 months,  is the fair market rental value + utilities and other expenses, divided by the number of occupants.

Can a single Dad claim the EIC of his child

Thank you so much. They both feel it's ok to claim the child support himself more than 50%.  Sorry for the confusion.

The dad just want to get the EIC even though the boy did not claim he is someone's dependent. 

 

Thank you!

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